SRC-JXG S.B. 1197 76(R)BILL ANALYSIS


Senate Research CenterS.B. 1197
By: Moncrief
Health Services
7/6/1999
Enrolled


DIGEST 

Currently, Texas law does not set guidelines for operating a nursing home
in which a trustee is appointed and emergency assistance funds are used.
S.B. 1197 will exclude a person owning, controlling, or operating a nursing
home in which a trustee is appointed and emergency assistance funds are
used, from eligibility for issuance or renewal of a license as a nursing
home operator, and will increase the penalty for occasions when trustees
and emergency funds are appropriated. 
 
PURPOSE

As enrolled, S.B. 1197 sets forth consequences for appointment of a trustee
or expenditure of emergency assistance funds for a nursing or convalescent
home. 

RULEMAKING AUTHORITY

This bill does not grant any additional rulemaking authority to a state
officer, institution, or agency. 

SECTION BY SECTION ANALYSIS

SECTION 1.  Amends Chapter 242D, Health and Safety Code, by adding Sections
242.0945 and 242.0946, as follows: 

Sec. 242.0945.  QUALIFICATIONS OF TRUSTEES.  (a) Authorizes a court to
appoint a person to serve as a trustee under this subchapter only if the
proposed trustee can meet certain conditions. 
 
(b)  Requires a trustee to report to the court in the event that the
trustee is unable to satisfy the requirements of Subsection (a)(1) or (2). 

(c) Authorizes the court to replace a trustee who is unable to satisfy the
requirements of Subsection (a)(1) or (2), on the motion of any party or on
the court's own motion. 

(d) Requires a trustee's charges to separately identify personal hours
worked for which compensation is claimed.  Authorizes a trustee's claim for
personal compensation to include only compensation for activities related
to the trusteeship and performed in or on behalf of the home. 

Sec. 242.0946.  NEPOTISM PROHIBITION.  Prohibits a person serving as a
trustee under this subchapter from employing or otherwise appointing an
individual to work with the trustee in the home who is related to the
trustee within the third degree of consanguinity or affinity, as determined
under Chapter 573, Government Code. 

SECTION 2.  Amends Section 242.095(a), Health and Safety Code, to require
the court to consider reasonable a rate that is equal to 150 percent of the
maximum allowable rate for an owneradministrator under  the state's
Medicaid reimbursement rules, in determining the trustee's personal
compensation for nursing facility administrator activities.  Requires the
court to determine the  reasonableness of the trustee's personal
compensation for other duties.  Requires the court to review the
reasonableness of the trustee's fees, on the motion of any party.  Requires
the court to reduce the amount if the court determines that the fees are
not reasonable.   

SECTION 3. Amends Chapter 242D, Health and Safety Code, by adding Section
242.102, as follows: 

Sec. 242.102. INELIGIBILITY FOR LICENSE. Provides that a license holder or
controlling person who operates a home for which a trustee is appointed
under this subchapter and with respect to which emergency assistance funds,
other than funds used to pay the expenses of the trustee, are used under
this subchapter is subject to exclusion from eligibility for certain
provisions.  Provides that exclusion under this section is governed by
Section 242.0615. 

SECTION 4. Amends Chapter 12D, Penal Code, by adding Section 12.48, as
follows: 

Sec. 12.48. CERTAIN OFFENSES RESULTING IN LOSS TO NURSING AND CONVALESCENT
HOMES. Provides that, if it is shown on the trial of an offense under
Chapter 31 or 32 that, as a result of a loss incurred because of the
conduct charged, a trustee was appointed and emergency assistance funds,
other than funds used to pay the expenses of the trustee, were used for a
nursing or convalescent home under Chapter 242D, Health and Safety Code,
the punishment for the offense is increased to the punishment prescribed
for the next higher category of offense, except that a felony of the first
degree is punished as a felony of the first degree. 

SECTION 5. Effective date: September 1, 1999.

SECTION 6. Makes application of this Act prospective.

SECTION 7. Emergency clause.